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Noida Airport gets ‘DXN’ code from IATAST - Issue was kept alive by department all these years by transferring SCNs to call book and without hearing the petitioner, impugned order was passed in a hurry - Order set aside and matter remanded: HCIncome Tax searches premises of Apple’s supplier in ChennaiGST - ITC refund - Circular No. 94/2019 - By adopting a pedantic approach, respondent could not have rejected the legitimate claim of the petitioner company: HCIndian shooter Esha Singh wins silver in Asian GamesGST - Works Contract undertaken - Chennai Corporation to consider representation of petitioner for reimbursing GST liability: HCPresident of India calls for more safety of womenCus - 16/2015-Cus as amended - Foreign Trade Policy 2015-2020 - Import of capital goods - IGST not required to be paid: HCJudicial Wisdom vs Administrative ArroganceGST - Mango Pulp - Pellucid mention of words 'was always meant to be @12%' in the Circular 179 indicates that the same has to be taken as being retrospective: HCIndia to commission anti-drone stations in all border StatesGST - When the whole country files returns and pays tax by uploading the same in the same software, it cannot be said that the GST portal is unviable: HCCBDT notifies changes to Rule 11UA relating to ANGEL TAXPop star Shakira again charged with tax fraud by SpainCX - As per settled position in law, Central Excise duty cannot be levied on subsidy amounts received under a State Government scheme: CESTATPunjab submits State Action Plan & District Plans to deal with stubble burningCalifornia is first State to impose tax on guns and ammunitionIndia made G20 a people-driven national movement: PMST - The fact that lump sum payment is received for services of transportation along with incidental loading and unloading will not change the essential character of principal service of transportation : CESTATRajasthan Police seizes fake gutka inputs worth Rs 25 Crore in ChittorgarhCentre finalises borrowing plan for Second Half of FY 2023-24Cus - Department has not produced any evidence to show that relationship between parties has influenced the price, reasons for rejecting transaction value is not in consonance with law : CESTATWaheeda Rehman to be honoured with Dadasaheb Phalke AwardUS Judge admits Trump conned by inflating value of assetsGST Council to hold 52nd meeting on Oct 7 at Vigyan Bhawan



ITC reversal requirement on warehoused goods - a half-baked amendment?

common ITC reversal on warehoused goods

Lawmakers seem to have consciously excluded the values of goods supplied from warehouse in Explanation under Section 17(3) of CGST Act,2017 so as to restrict common ITC on input services say like GST paid on office rent from where the business is carried out. Let us take one common input service on rent to understand the issue in proper perspective.

For ease of understanding, let us take that a business man doing Rs 10 cr annual turnover has made a turnover of Rs 5 cr domestic supplies and Rs 5 cr warehouse supplies falling under clause 8(a) of Schedule-III to CGST Act,2017.

Assuming that he paid GST of Rs 6 lakhs on office rent in a year, would it not be prudent to reverse Rs 3 lakhs ( as per Rule 42) attributable clause 8(a) of Schedule-III supplies?. It is reasonable to restrict common ITC on office rent in my view. Of course, the lawmakers have waived reversal of ITC on common goods and services in respect of other Schedule-III supplies. Please note that schedule-III supplies are not liable to tax under GST law falling under non-GST supplies read with exempt supplies. Personal views expressed.

rrkothapally rrkothapally 27/05/2023



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